TLDR
- The Radix Foundation is launching a $25,000-per-month ecosystem fund to buy and hold native assets in the Radix ecosystem.
- The fund will boost visibility, enhance liquidity, and reinforce the Foundation’s commitment to the Radix ecosystem.
- Monthly allocations include 70% towards a weighted token index and 30% towards a randomly selected top-50 token. The date of purchase each month will be random.
- All purchases will be made from a public wallet, and minimum holding periods will ensure transparency and stability.
Radix is a full-stack solution for a simple yet powerful goal – to facilitate the issuance, management, and programmability of digital assets on a global scale.
Everything in the platform, from the underlying Cerberus Consensus – recently given a new roadmap from Radix Labs – through to Scrypto and Radix Engine that act as a game engine for DeFi, uniquely positions Radix to become the universal asset layer.
Building the new global rails for finance isn’t just about technology. Adoption is just as important. First the innovators, then the early adopters, followed by the early majority and beyond. For Layer-1 networks like Radix, the ecosystem built upon it is the basis of all adoption and supporting the builders, projects, and assets in the ecosystem is essential.
Following on from the success of the Radix Ecosystem Fund, that provides grants of up to $160k in XRD to dApp projects on Radix, the Radix Foundation is taking the next step to accelerate the growth of the Radix ecosystem by launching a $25,000-per-month fund to buy and hold on native assets in the ecosystem.
This initiative aims to boost visibility, deepen liquidity, and convey confidence to builders, community members, and the wider industry in the assets in the Radix ecosystem.
For developers and projects, this means more support and a stronger market presence; for community members, it’s a reassurance that Radix is committed to nurturing and fostering a thriving ecosystem.
Starting December 2024 – How It Works
- Monthly Allocation: $25,000 will be allocated each month, split as follows:
- 70% Index Allocation: 70% will go into a weighted index of the top 20 ecosystem tokens, excluding wrapped assets, XRD, and the Cassie token.
- 30% Focused Allocation: 30% will be invested in a randomly chosen top-50 ecosystem token.
- 70% Index Allocation: 70% will go into a weighted index of the top 20 ecosystem tokens, excluding wrapped assets, XRD, and the Cassie token.
- Randomization: Both the token selection and purchase date will be randomized and front-run resistant, using a process defined by Radix founder Dan Hughes (Details TBC).
- Minimum Holding Period: Tokens purchased will be held for at least six months to ensure stability and long-term growth support.
- Full Transparency: The fund’s activities will be conducted through a public wallet, allowing the community to verify every purchase.
Why Investing in the Ecosystem Matters
Encouraging Growth: By creating consistent demand for ecosystem tokens, the fund helps foster a growth environment for native assets in the ecosystem. This benefits developers and projects and makes Radix an attractive ecosystem for long-term participation.
Demonstrating Commitment: The Foundation’s financial backing highlights the dedication to empowering builders and innovators within the Radix community. This support encourages new projects to launch on Radix and reassures existing projects that they are valued.
Boosting Liquidity: Liquidity is crucial for healthy markets. By purchasing ecosystem tokens monthly, the fund increases market activity and depth, making the assets more viable for retail and institutional users. With the upcoming addition of Flash Liquidity and multiple newly wrapped assets, bolstering the native assets in the ecosystem is vital to ensuring trade flow moves into these assets as well.
Looking Ahead
Transparency is at the heart of this initiative. The wallet address will be publicly available, and there will be monthly updates detailing the fund’s purchases and activity.
The first allocation will happen in December. Stay tuned for a future blog post exploring the methodology behind the randomization process.
